Baidu to raise $2 billion with investors for a biotech startup

On Wednesday, Baidu (BIDU.O) and its investors reported that it would raise $2 billion over three years for a biotech startup.

The Chinese multinational technology company said that it would use Artificial Intelligence (AI) technology to discover new drugs and diagnose diseases.

WeDoctor (0700.HK), Alibaba’s (BABA.N) healthcare arm, and Ping An Good Doctor (1833.HK) said that it would join Baidu to develop applications that could offer diagnosis, prescriptions, appointment bookings, one-hour drug delivery, and health insurance.

Baidu said that the project would focus more on drug discovery and development, early tumor diagnosis, and mobilizing its powerful AI technology that could perform complex computing to produce biological innovations.

According to a reliable source, Baidu’s Founder and Chairman Robin Li had been personally involved in the project. However, the name of the startup has yet to be decided.

Baidu’s shares were down by 3.7% in premarket trading.